Our customers often spend all of their time looking for the just right home, the right piece of real estate, where they will live happily ever after. 

Sometimes they are educated buyers, but many times I hear people say, six months after their home purchase, "I wish I would have bought closer to the city.  There aren't any other children for our kids to play with here in this area."   Of course it could be ‘further from the city' and ‘in a quieter neighborhood'.  The point is that sometimes our customers really don't even know what to ask.  A really good realtor might find out enough about their life style to steer them in the right direction, especially if he/she can read minds. 

The same type of things  happen with acquiring a loan.  There is sticker shock at the closing table too often.  There are customers in a conventional loan because that is what they know about. 

Here's a way for your customers to become a little savvier, by knowing what to ask.

1. What documents do you need upfront?
2. Will you pre-approve a loan for me?
3. Will you give me a side by side comparison of atleast two different loans that might fit the bill for me?
4. Does my loan have a pre-payment penalty?
5. What is your yield?
6. What is my payment, can it change?  What is the worst case scenario?
7. Do you guarantee your closing costs on a good faith estimate?
8. How does my FICO score affect my loan rate and term?
9. What if I plan to live in my house for one year?  Will that change the rate?  Is there a better way to structure this loan for a short term period of time?
10. What guarantee can you make so that I am sure there won't b3 a discrepancy at closing time?
11. When is my rate locked?  How long is the lock?  
12. How often will you communicate with me on my loan?
13. How long will it take to process and fund a loan with your company?
14. If I have PMI, how soon can I drop it? 
15. Will you do a streamline no cost loan if I refinance within a certain period of time?
16. Can I review my closing documents prior to closing?
17. Can you give me a couple of names and numbers of past borrowers to contact as references?

I can't think of a reason that a realtor wouldn't want to hand  a copy of these questions, along with the business cards of their preferred lenders to their clients.  I know that realtors are always concerned with surprises at the closing table and consistent followup - those are the two big requirements that I always hear - assuming that their lenders are total wackos!   

A customer who is happy with their house and happy with their loan and happy with their closing experience is a customer who will bring referalls and brag about how great their experience was - usually to not only all of their friends, but to anyone who will listen.    

Add a few of your own questions, put your logo on this list, and feel free to hand it out to all your clients!  Let me know if you think of any great questions to add to my list, too

Where you one of the people who just thought this was a GREAT MOVIE???  Does looking at the cover just make you laugh inside as you recall some of the scenes?  You may want to rent it and watch it again because it contains a great marketing strategy!!

I recently ran across an article on the internet that actually contained better substance than the original Hook Title.   I'm going to share it along with the website, but first a quick story behind it all.

My 21 year old son recently left a job after just a couple of months selling a web based package - it was all commission sales, and he is great at selling.  After the first two week honeymoon period, he was calling me saying, "Mom, we spend all of our time telling retired people how miserable they are and how they will fail financially."   

I kept telling him to make people feel good, and then sell to them.  Add to their success as opposed to throwing them a lifeline just before they sink!  But he COULDN"T DO THAT,  BECAUSE IT WASN"T IN THE SCRIPT!!!   As the weeks went on,  he was just so miserable, that the misery he was iimposing upon his clients was leaving its gloom cast upon him, too.  Misery, guilt, failure, hmmm do you see the pattern? 

He comes from a long line of positive thinkers - 80 years ago, his preacher grandpa was telling everybody about something called "ABUNDANT LIFE."  So, my son acted upon his gut feel and broke loose from this "Lets cause our customers extreme misery" program. 

I found this particular article on the Internet and I suggest you check it out - Its by Dr Joe Vitale, one of the authors of "The Secret". 

                                    The Greatest Motivator Isn't What You Think-
                                                     or,

                       What I Learned From Drew Barrymore and Adam Sandler on Valentine's Day

It's Valentine's Day as I write this. Nerissa and I just returned from watching the new movie, "50 First Dates," starting the beautiful Drew Barrymore and the funny Adam Sandler. Besides being a hilarious movie in a beautiful setting with a heartfelt message of true love, it also caused me to have an "a-ha" right in the middle of it.

Somewhere around half way through the movie, as Adam is again reminding short-term memory loss victim Drew that he loves her, I suddenly realized the power of the greatest motivator of all time.

But let me first set the stage.

Most psychologists, direct marketers, and anyone who persuades for a living will tell you there are only two basic motivators: Pain or Pleasure. You either go toward what you want or away from what you don't want.

The standard argument is that pain is more powerful. I've tended to agree, but also stated I would not focus on pain for idealistic reasons. I simply don't want to spread pain in the world. Focusing on it causes you to feel it. I don't want to contribute to the misery many feel. So my stance has been to focus on pleasure as a motivator in my sales letters and websites.

Most marketing experts agree that pain is the best trigger to focus on in any ad or sales campaign. They love to find a prospect's basic problem, and then rub their noses in it. They figure the pain would make the person buy or change.

The most common example they give is the insurance salesman who tries to sell you home coverage. If he focuses on pleasure, you will put off buying. If he tells you your house is on fire, you will buy. Pain causes immediate action.

So, like everyone else, I "knew" pain was the greater motivator. I simply focused on pleasure because it is a more noble route.

But then I saw Drew Barrymore and Adam Sandler in their new movie and suddenly I felt awakened, energized, and validated.

Here's the film's plot in a nutshell:

Adam is in love with a woman who can't remember anything from the day before, due to a head injury in an auto accident the year before. Every day is a new day. And every day Adam has to win her over again. Every date is new. Hence the title, "50 First Dates."

At one point in it, as Adam was again wooing Drew, I suddenly realized what I was really seeing.

I saw pleasure was the greatest motivator of all.

Adam was pursuing Drew every day, despite the pain and the odds, because of his growing love for her. He was going after pleasure. The pleasure goal was so powerful it erased every pain he might experience.

In short, all the marketing experts who say pain is the greatest motivator have forgotten the power of our driving force in life: Love.

People will scale mountains with luggage on their backs, swim upstream in a hurricane, and battle armies and all odds in order to fulfill that hard-wired emotion in us to love and be loved. Love rules.

All the examples we were given were unfair. Someone trying to sell insurance and resorting to pain hasn't figured out the real pleasure button to make someone buy. They've been too lazy to search for the pleasure trigger. Focusing on pain was simply an easy cop-out, a handy approach.

It's the same with all the massive ad campaigns that fail. Trying to get someone to quit smoking or stop drugs because of the pain they depict in the ad is the wrong approach. If we suddenly focused on the pleasure someone would have when they stopped smoking or taking drugs, we'd be moving in the right direction.

This is so obvious to me after watching the movie. Our goal as marketing and business people isn't to tell people what's wrong with them or to remind them of their pain, but to help them imagine and then experience the pleasure they long to have.

It's noble, yes, *and* it works.

Love moves everyone.

Love is the great motivator.

Love is the great pleasure trigger.

According to my friend Kevin Hogan, author of "The Psychology of Persuasion," love isn't an emotion but a mindset. And as a mindset, it is actually stronger than any emotion.

In short, you're dealing with the most powerful motivator of all time.

Reveal what there is to love about your product or service and you'll give people authentic reasons to do business with you. Call it Love-Based Marketing. You won't sell everyone with it. You'll sell only those who are a match for your offer. That, in the end, is all you want. Then you're happy and so are your customers.

Just like Drew Barrymore and Adam Sandler, you'll find a match to write home about.

And you might make a little money along the way, to boot.

by Dr. Joe Vitale
http://www.mr.fire.com

One of my talents is networking.  I understand the dynamics of keeping old friends, making new friends, joining organizations, becoming active in them and just being VISIBLE. 

As a newbie in the mortgage business, I understood that beginning with a  major networking campaign would be to my advantage.  Understanding the laws of attraction, that it might take six months for the networking campaign to start paying off, I have been patiently (sort of) working it to my best advantage. 

• First of all, I sent out a Postcard Mailing to my existing client base (otherwise known as everyone I have an address for who might know my name) - about 200. 
•  I have followed that up with joining the Board of Realtors, attending Realtor Open Houses, dropping into offices with flyers, not with a big sales pitch, as much as Increasing the Visibility Factor.  I follow up with a note letting them know I appreciated meeting them.
• I sponsor open houses by bringing refreshments.
• I joined two committees, Habitat for Humanity Golf Tournament and Environmental Improvement Committee and actively support them.
• I volunteer monthly to be on the panel for the Realtors New Member Orientation Training 
• I drop in to see Realtor Friends with a lunch occasionally, 
• I religiously promote people, I refer people who I believe are good at what they do to each other: ie Appraisers, Insurance Agents, Inspectors, Realtors, Title Services.
• I read books, most recently Jeffrey Gitomer's Little Black Book of Connections. 
• I ask the Sages of my Industry the WWJD question:  in this case, What would Jane do? 

  Here's a couple of things I've noticed in the last three months: 

Based on the book I mentioned, there are 6.5 Assets for Networking:

1. Who do I know?
2. What do I want"
3. What do I do?
4. How do I connect?
5. Who knows you?
6. The secret Power of Connections and 6.5  The Value of Connections

My "Sage" tells me, that networking is all about the relationship building.  In the mortgage world, Its almost never about the rate or the program.  Any good loan officer can figure that out - and I assume most do.  But its the CLICK when you meet someone with a common interest.  Its the personal CLICK that eventually moves you to the business world because TRUST was built. 

On the positive side,  I love people so all of this is fun to me, even though I guess you could call it work. 

On the other side of the coin,  staying so visible makes me feel like I'm always working.  I go to Yoga, I go to the grocery store, I go to church, I go to basketball games, and I could just continue my day networking 24X7.  There is a burnout  risk here.  So achieving BALANCE is always a factor. Sometimes, I don't bring a business card.  And I don't put a sticker on my forehead.  Its just for me.

On the positive side, I truly believe in the force of attraction.  Stay positive, stay focused, believe that eventually word will spread and you'll get the business.  But I have to remind myself to BE PATIENT. 

When there is negativity on the horizon, I turn inward, and begin my GRATITUDE mediation.  It helps my focus. 

So does it all work?  This morning I had six calls by 8:15 am.  Referrals.  Yesterday I didn't have any.  Its baby steps. 

Someday I'd really love to see a comet like this one, wouldn't you?  Light pollution can wreck it all for us. 

One of my good friends and a one time neighbor of mine, Anthony Arrigos of Park City, Utah, has started an endeavor to fix this problem.  Most of the information that follows originated with him, but I have to share the story  about being back in the "hood".  After dark, on many a night, we would walk around the block and bump into Anthony with his huge telescopes out in the middle of the street.  We'd climb the ladder and check out the night skies.   Wow.  It was always educational as well as sometimes amusing.  Because, you see, Anthony was on the constant lookout for ski pollution offenders.  And he had no issues with tromping up someones front steps and unscrewing their lightbulbs.   Which makes as much sense as turning the ignition off a HUMMER thats been idling for four hours.  Anthony isn't one of us faint of heart people whose afraid to take a stand for fear of losing an acquaintance here or there.  Its all for the greater good in his book.

You ought to check out the environmental friendly outdoor lights he sells, as well as his web site. http://www.starrynightlights.com/ but here's a primer on light pollution to get you started.

Light pollution is a problem that affects much of the world's population. Simply put, light pollution is misdirected or misused light generally resulting from an inappropriate application of outdoor lighting.

1. Light pollution can be seen as the glow above our towns and cities, as the glare that makes it hard to see at night and as the light trespass that shines into our bedrooms at night.
2. Light pollution is much more than the nuissance that prevents us from seeing stars in the night sky. Light pollution wastes at least $5 billion annually.
3. Light pollution wastes incredible amounts of our valuable natural resources, consuming hundreds of millions of barrels of oil and hundreds of millions of tons of coal. Light pollution pollutes the air we breath by burning all the oil and coal mentioned above. Air pollution is a problem that impacts large segments of our society.
4. Light pollution harms nocturnal wildlife with many species being unable to cope with the loss of a dark night environment.
5. Light pollution even harms humans, being linked to a number of very serious ailments.

Fortunately, light pollution is also one of the easiest environmental pollutants to remedy. By following the few simple steps outlined below, we can dramatically reduce the effects of light pollution on our planet.

Light Responsibly
This sounds incredibly simple, and it is. Unfortunately, this is typically the most overlooked step. In many situations, you'll find outdoor lights that serve no safety or security purpose at all.. Many times, lights are installed simply for aesthetic purposes. How many times have you seen homeowners put lights under their trees shining straight up? We know you have a tree... we saw it during the daytime. There's absolutely no need to light it for us at night. Additionally, many architects place lights on the sides of their buildings that shine straight up into the night sky. Uplighting is a waste of money and natural resources as well as a major cause of light pollution. Additionally, many times you'll see lights on round the clock, even though there is nobody around. This is  wasteful. Another irresponsible use of light is to use the brightest bulbs available. Using more light than a given task requires does not help the situation and will often reduce your visibility. A much better solution would be to make use of night sky friendly outdoor lights. These are lights which shine down onto the ground where people walk. They don't shine wastefully into the night sky. This allows for the use of much smaller wattages and save lots of money and natural resources. To top off your optimized outdoor lighting solution, make use of motion sensors. These allow the lights to be off most of the time and then turn on instantly whenthere is activity in the area. This can save more than 90% of the electricity consumed by many outdoor lights

Educate Others About Proper Outdoor Lighting
Your first goal should be to improve your own outdoor lighting. After you've got things under control on your end, you should try to educate your friends, neighbors and elected officials. Outdoor lights are everywhere. If each of us were aware of the impact our lights had on the world around us, there would undoubtedly be far less light pollution and far less resources consumed. Many people are simply unaware of the impact their outdoor lights have on their surroundings. If we each take a few minutes as the opportunity arises to educate those around us about proper outdoor lighting and light pollution, we can slowly but surely eliminate this wasteful practice. If you'd like to get intouch with the experts in your area, a good place to start would be The International Dark Sky Association (IDA). This is a group that was founded with the sole purpose of protecting our heritage of star filled skies. They are the light pollution experts and a great resource for people seeking to learn more about light pollution as well as how to apply better outdoor lighting practices.

Finally a reminder, If you want to know where you can find Energy Efficient Outside Lights, please check out:  http://www.starrynightlights.com/   You can even check out the interesting and informative blogs on the subject. 

Renee Kokoszka, Park City, Utah Loan Officer 

I am always motivated by the Statue of Liberty.  I aspire to be a Utah Loan Officer who invites anyone from any background, any economical plight, and any type of disability into my office.  Its an opportunity to begin a relationship.  Its an opportunity to learn how the rich live.  And how the poor live.  And how people from other cultures live.  Its a place to listen to someone's story and build an exchange of information.  Its an opportunity to enrich my life and the other person's life.  Oh, did I forget?  Yes, its also a place to Originate a Loan. 

Recently I had an interesting loan prospect from someone who forgot to tell me he had a FORECLOSURE and an IRS JUDGMENT for $40K.  His credit rating, surprisingly enough, was decent.  I wanted to give him better news about loan possibilities than I could.  Anyone have any ideas????  

The very next evening, at a dinner party,  a good friend of mine asked if I had any avenues for a Super Jumbo Construction Loan on a spec house.   As the discussion continued, I realized it was maybe possible, but certainly with more challenges than meets the eye.  I'd like to hear of anyone who has access to 4-5 million dollar loans for constructing a spec home.

I have met the most amazing people.  Every loan application I take, has a story behind it.  And I have never taken a loan application from someone who was just "boring" or "regular."  Its an interesting road we walk down, isn't it? 

I market, I blog, I stay visible, I blog, I volunteer, I blog, I build on relationships,  I blog, I truly believe in keeping a WELCOMING OPEN DOOR POLICY to anyone in my circle of influence. . 

Oh did I mention I BLOG?   FOR THOSE OF YOU WHO AREN'T KEEPING YOUR DOOR OPEN TO SERIOUS BLOGGING ADVANTAGES, here's my recent experience.  I'm one of those who blogged but was skeptical, until I was at my favorite look-it-up site  www.google.com one day last week searching for Park City Business Women's Network, and Lo and Behold, there I was listed in the first position, www.city-data.com/profiles/2234. Then I was curious, and searched for "Park City Utah Mortgages" and was listed at the bottom of the first page, www.activerain.com/koko 

So market, stay open to new opportunities, Seriously Blog and let me know what you do with the really tough loans that come your way!

Renee Kokoszka, Park City, Utah Loan Officer, 435-962-5656

As I survive the onslaught of slightly hysterical local media hype about all of the famous celebrities in Park City this week for Sundance,  I know there are certain things you can always count on:  Movie Star Sightings, Movie Star Quotes in the local newspaper, and occasionally, even a Famous Person interaction.  And mostly we are completely entertained and bewitched by such world famous (and infamous )characters in our sweet little city.  Today, was a cold call day for me, (really icy cold) and I spent the day attending open houses in the greater Park City area, lucky enough  to see Robert Redford walking down the street as I left the Silver Queen Hotel  www.silverqueenhotel.com .  Jana Potter, the owner, the proprieter, designer, and real estate agent is famous in my book for her vision and follow through as she designed the one and two bedroom suites in the Silver Queen.  It might have been the most gracious tour by a real estate person that I have ever had the privilege of attending.  Every footstep through the building was permeated with her care for detail, her love of the property, and her ability to invoke luxury in every nook and cranny of the building.  I walked out the door to our historical and charming main street -  with the real concern that I may not be able to afford one before they are sold!

Oh yes, and there was Robert Redford.  Even though I have caught a glimpse of him here and there over the years, without any personal interaction, I do have to say that he is definitely deserving of his fame.  His gifts of land conservancy here in Utah, as well as, his involvement in the creativity and arts movements are eloquent enough to leave a legacy of volumes behind him. 

Then two years ago, there was Ashton Kutcher who was in town for Sundance with Demi Moore, and just showed up at the Park City Mountain Resort  http://www.parkcitymountain.com/winter/index.html  No, he wasn't signing autographs, and I may not be able to list all of his movies, but he snowboarded with a bunch of local junior high kids that day.  My son was one of those kids, and we all felt that Ashton's taking time  to board with the local kids was a big gesture to be famous for. 

Speaking of son and snowboarding.... Ashton probably thinks these Park City kids are pretty famous for what they do too.  Here's my youngest,  he knows how to RISE ABOVE IT ALL!

So I have decided that I'd like to be famous for a few things myself:

• Leaving my world of Park City a better place than I found it.  Recycle more, waste less; walk more, drive less; make environmental choices throughout the day.
• Actively participating in the communities of my choice.  Maybe a committee, maybe the booster club, maybe pounding nails in a house for Habitat for Humanity.
• Learning something new continuously.  Whether its a new class in the mortgage environment or a class in making beads, just staying open to becoming more educated.
• Undertaking physical activities that demand something from us, ie, hiking the Grand Canyon, skiing Jupiter Bowl on a powder morning, scuba diving. 
• Entering each moment throughout the day with a purpose for the greater good both in what I accomplish and who I interacted with.  Sometimes its my family, sometimes its my marketing labors, and sometimes its just me  at the grocery store.  I can deliberately be kind, and deliberately be ethical, and deliberately stay in the moment every moment.
• And really, originating ten loans a week that close! 

I'm interested, do you have a dream?  Do you think of becoming famous?  What would you most like to be famous for?  I've beared all, now its your turn

Today, I was begged by my daughter to watch my five month old grandson for awhile. This meant putting my mortgage business aside, which meant less phone calls, less visits, less running around to open houses, less of a chance to prospect for loans.  I wondered why eveyone thought MY JOB was the expendable one and felt pretty sorry for myself. 

 So I decided to be productive anyway and I laid this little baby on the floor on a soft old blanket with my big Scotsman Guide www.scotsmanguide.com/mtg beside him. 

I alternated between checking fingers and toes and blowing bubbles to reading up on new mortgage products and various articles about whats new and whats hot in the marketplace.  And wondered about my role in my family's life, my personal life and my business life. 

After a couple of hours of baby play, and reading the pictures, big print, you know, the Browsy stuff. It was nap time. 

This use of my time was productive after all.    It moved me to ENJOY myself, just abandon all else  to the love of this little child.  And in that moment,  I had to think about every single person out there who is looking for a refinance or looking to buy a home.  How human are they?  How much does this transaction mean to them?  Is it really a numbers game, or is it a human interaction, maybe a human intervention?  Your loan is with SOMEONE who probably has family, children, grandchildren, husbands, wives, parents, brothers, sisters, even pets as well as close friends that he/she dearly loves. We need to know so much about a person to do a loan.  It really is an invasion of privacy and space that can't be helped.  But my reminder today, was to be gentle, and understand how this large amount of money will influence a person or a family's life. 

This brings me to the articles I have read about GORILLA SALES TACTICS:

"...Holding back thoughts of financial types stealthily creeping through the deepest, darkest African undergrowth trying to surprise our elusive forefathers, I was all ears..."

African guides on safari tours cannot guarantee meeting gorillas, you see, but they do have a very high success rate. And while gorilla sales tactics can't guarantee new  clients, it could put a mortgage lender in touch with thousands of prospects, and might very well provide a high success rate.

And the end destination of this jungle activity might be a gorilla whose positively thrilled, but then again, maybe, it just might, turn around and attack you.

Previously, I blogged about optimism,  now I'm on a pitch for treating people like people. 

In the Scotsman Guide, the tip of the month read:

...A smile is the foundation of any sales pitch  It must be genuine and a natural expression.  It should even be felt over a telephone or via e-mail.  Great mortgage brokers smile to welcome their customers.  Most important, the smile must be honest and should portray integrity... "

STAY WITH ME HERE, THE MOST IMPORTANT ACTION IS STILL TO COME!!!!

The smile should be followed up by FOLLOW UP.  The famous FU word takes a new turn!  No matter how friendly, how optimistic, how ungorilla like you might be,  if you fail to stay with your client, and let them know the rate, the lock, the changes, the close date, yeh, I'm talking TILA and GFE, with a personal touch, you are still at risk for making the deal but LOSING your customer's future business with all of his friends and family.

The Follow Up Condition of the Sales Meeting actually lasts quite a long time.  It sits at the closing table like a real live person, with a smile.  One who holds the baby (or puppy) as needed.  It is still active  two or three weeks after the CLOSING, when the Follow Up is a call to say, "I'm just following up. Did your loan work out for you?  Are you completely satisfied?  Was there anything I could have done differently?" 

You see,  I'm ready to take a risk here and there myself. Well yes, quite a few.  And for those who care, while I don't leap from boulders at the Grand Canyon.  I have hiked rim to rim.....

But when it comes to my customers,  I want to treat them like old friends, or family,  I don't want them  worrying about their financial situation, or taking scary risks,.                                                                                                                                                          

I want them to sleep like a baby at night.

Lastly just a post note here about the Scotsman magazine.  It really is a wealth of information. Lots of great articles about keeping the industry honest, diversification, managing risk and as I look ahead in the index, I even see waiting up ahead: "How to be no. 1 in Web Searches." Plus many, many more great articles.  Its almost as good as ACTIVE RAIN. 

Renee Kokoszka, Park City, Utah, Mortgage Lender, 435-962-5656

To be so strong that nothing can disturb your peace of mind

To talk health, happiness and prosperity to every person you meet.

To make all your friends feel that there is something valuable in them.

To think only the best, to work for the best and to expect the best.

To be just as enthusiastic about the success of others as you are about your own. 

To forget the mistakes of the past and press on to the greater acheivements of the future.

To give smiles awy to every living creature that you meet.

To give so much time to the improvement of yourself that you have no time to criticize others.

To be too large for worry, too noble for anger, too strong for fear, and too happy to permit the presence of trouble.

This really isn't mine,   its an unknown author.  But I added a few words, deleted a few, and while I know it has a Pollyanna feel to it,  its still worth looking at and re calibrating occasionally.

 Sometimes something so small and simple comes along that just blows me away with the proportion of my energy involved to what it will do to my environment.  So my New Years Resolution is to Change the World one lightbulb at a time!  As my light bulbs burn out in my house, I am replaceing each one with a CF energystar light bulb. Did you know that:

Every light bulb or fixture you change to a CF energy star will:

• Use 1/3 of the energy of a standard incandescent light
• Last up to 10 times longer
• Save an average of $30 or more in energy costs over its lifetime
• Prevent 450 pounds of greenhouse gas emissions over its lifetime
• Help preserve our energy resources

My goal this year is to gently encourage everyone in my sphere of influence to jump on the bandwagon, and share my New Years Resolution.

There is even a pledge you can take - check this all out at http://www.energystar.com/

and HAVE A HAPPY NEW YEAR!

I have recently become involved in an environmental improvement committee.  My area of focus within this community is knowledge, understanding and promotion of energy efficient mortgages.  I'd love to hear if any other lenders have energy efficient mortgage programs or experiences.  Meanwhile, I thought surely everyone would appreciate this information on the subject.
Energy-efficient mortgages are one of the most beneficial and under-utilized programs the consumer can find and capitalize upon in today's real estate market. An energy-efficient mortgage can add an additional 15% of a home's appraised value to the principal of a new loan or a refinance, often at no additional cost, no compromise in the loan-to-value ratio for the borrower, and sometimes at a better rate. 

The attractiveness of the energy efficient mortgage options also extends to lenders. What happens is that as the borrowers make the stated energy efficiency improvements and create monthly utility bill and other savings, their monthly cash-flow improves. This improvement in monthly cash-flow makes the borrower an even more stable and reliable customer, less likely to present the prospect of default.  For the real estate agent, the energy efficiency of a home becomes an attractive selling point.

Most energy-efficient financing programs require that the borrower has an energy rating on their existing or new home. A rating typically involves an inspection by a professional energy rater who is certified under a nationally or state accredited home energy rating system (HERS). The Residential Energy Services Network (RESNET) provides a database of Certified Home Energy Raters by state.  To help qualify for most energy-efficient financing, the report usually must show that the home is energy-efficient or that recommented improvements are cost-effective and will save your more money than you'd be borrowing to install them. 

For more information on energy efficient mortgages, see the links below More Information On This Topic:

Fannie Mae: Mortgage Products - Energy-Efficient Mortgage

U.S. Department of Energy's Energy Efficiency and Renewable Energy Clearinghouse: Financing an Energy-Efficient Home

U.S. Department of Energy's Consumer Energy Information: Elements of an Energy-Efficient House

U.S. Department of Energy's Consumer Energy Information: Professional Home Energy Audits

Renee Kokoszka, Loan Consultant for Suburban Mortgage, Park City, Utah